Our fourth and final episode on local government discovers how local government in England is held accountable. Councils answer to both their local voters and the central government. They are financially independent with their own assets and ability to borrow. Central oversight comes through the Department for Levelling Up, Housing and Communities (DLUHC) and designated Accounting Officers, who are personally responsible for public funds. This system uses financial rules, audits, and transparency to ensure councils spend money prudently. The government can intervene if a council fails its Best Value duty.

Key Takeaways:

• English local authorities are accountable locally to voters and centrally to government departments like DLUHC.
• Councils are financially independent but must follow statutory financial codes and rules.
• Every council has an Accounting Officer personally accountable for public funds, often to Parliament.
• Central government collects various data to get assurance about local spending and services.
• Important financial rules include guidance on treasury management, investments, minimum revenue provision (MRP), and borrowing limits under the Prudential Code.
• Councils have a Best Value duty to continuously improve services efficiently.
• The government can legally intervene if a council is failing its Best Value duty.
• OFLOG was established to publish performance data but is being closed.

Important Definitions & Concepts:

• Accounting Officer: A senior official (often the Chief Executive) in a local authority personally accountable to Parliament (usually via the Public Accounts Committee) for the use of public funds.
• Best Value Duty: A legal requirement for principal local authorities in England to continuously improve how they perform their functions, considering economy, efficiency, and effectiveness.
• Prudential Code: A code that provides guidance on borrowing and managing capital finance for local authorities, including setting limits.

Source: Local government in England: structures
Research Briefing
Published Tuesday, 22 April, 2025

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